Debated in Parliament on 4 Aug 2014.
Ms Foo Mee Har asked the Minister for Manpower how CPF LIFE can be enhanced to provide a retirement income to widows who have to depend on their deceased husbands' annuities from CPF LIFE policies.
A member on Central Provident Fund (CPF) Lifelong Income For the Elderly (LIFE) commits his savings from his Retirement Account to CPF LIFE to provide monthly payouts for life. Under the CPF LIFE Standard and Basic Plans offered today, upon a member's death, the CPF savings committed minus any monthly payouts received will be refunded to the member's CPF account. The refunded amount together with his remaining CPF savings will go to his beneficiaries. His beneficiaries will receive the bequest in cash. However, should members prefer, they could request the CPF Board to transfer their CPF savings to their beneficiaries' Special or Retirement Accounts to be streamed out in retirement. This can be done under the Enhanced Nomination Scheme.
There are other ways members can provide for their family through the CPF system. We have enhanced the Minimum Sum Topping-up Scheme over the years to encourage Singaporeans to make cash top-ups into the CPF accounts of immediate family members and enjoy tax relief at the same time. Singaporeans can also use their own CPF savings to top up their family members' CPF accounts if they have already attained the applicable Minimum Sum. This will help boost the CPF savings of family members who have lower balances, so that they, too, can enjoy payouts through CPF LIFE.
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Widows who have co-owned a home with their deceased husbands can also choose to unlock their housing equity through monetisation avenues, such as the Silver Housing Bonus and the enhanced Lease Buyback Scheme, to supplement their retirement income if necessary.
For those groups who are unable to tap on any of the mentioned schemes, have little family support and require financial assistance, we will help them through other social safety nets, such as ComCare.
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